Community Investment Tax Relief

Use this form to enter details about Community Investment Tax Relief (CITR).

Create a separate CITR form for each investment. Two types of investment in a Community Development Finance Institution (CDFI), each of which has particular conditions attached, are available:

Loans

The loan must be either drawn down in full on the investment date or drawn down in stages within 18 months after the investment date. Tax relief is given on the capital balance of the loan that has been drawn down. The loan must not be convertible into shares or securities that allow redemption within five years of the investment date, but the loan may be repayable in stages, subject to criteria.

Shares or securities

The shares must be subscribed for in cash and fully paid up on the date of the investment. They must not allow redemption within five years, or conversion into a loan or other shares or securities that could be redeemed within five years of the investment date. Joint ownership of the shares or securities is not allowed.

The investor can claim tax relief of up to 25% of the amount invested once a tax relief certificate has been issued by the CDFI. The tax relief must be spread over the five-year term of the investment giving only 5% tax relief per year. The tax relief reduces the investor's tax liability, and is limited by that amount of that liability. The order of set off is that CITR is given after any relief due under the EIS and VCT scheme has been taken, and before any double taxation relief due, but so as to retain sufficient income tax to cover any gift aid donations made. If the investor receives any significant value from the CDFI within a six-year period starting one year before the date of the investment, the tax relief is withdrawn.

Option	Description
Name of company / scheme	The name entered here will appear on the Reliefs data schedule. This box must be completed. You cannot save any other changes that you have made to the form without doing so.
Amount of original investment	Enter the amount of the original investment that would have qualified for relief had all the relevant conditions been met.
Unclaimed amount brought forward from earlier years	Enter any amount not relieved in earlier tax years, available to be relieved in this tax year.
Amount carried forward to 20xx/xx tax year	Enter any amount to be carried forward and claimed in a later tax year.
Total amount on which relief claimed for 20xx/xx	Calculated as Amount of original investment plus Unclaimed amount brought forward from earlier years, less Amount carried forward to 20xx/xx tax year.
Date of issue of shares / qualifying debt investment	Tax relief may not be claimed until the tax relief certificate has been issued by the CDFI (Community Development Finance Institution). Enter the required details so as to keep a record of the date. You cannot save any other changes that you have made to the form without doing so.
Number of shares HMRC office authorising issue of certificate HMRC reference on certificate issued	This information can be found on the CDFI tax relief certificate. These details will appear in the Any other information box on the Tax Return (SA100).
Date relief ceases / withdrawn	Calculated as four years after the last day of the tax year in which Date of issue of shares/ qualifying debt investment falls. This date can be amended.